Finance - Credit Card Safety

A viral e-mail forwards advice like:

1) Do not sign the back of your credit cards. Instead, put 'PHOTO ID REQUIRED'.  (If your bank provides the service, have your photo put directly on your credit card; Bank of America does this.)

2) If you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the 'For' line. Instead, just put the last four digits. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it. (Also, if sending payment checks by mail, do not leave them in a streetside mailbox for the carrier to pick up, as someone else may intercept it.)

3) If your credit cards are lost or stolen, cancel the credit cards immediately. The key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them, whether you are at home or on the road.

4) File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).

5) Call the three national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number.
a) Equifax: 800-525-6285
b) Experian (formerly TRW): 888-397-3742
c) Trans Union : 800-680-7289
d) Social Security Administration (fraud line): 877-438-4338

6) In addition, place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel.... Keep the photocopy in a safe place. Also carry a photocopy of your passport when you travel either here or abroad.

Generally, limit the number of credit cards that you have or carry, so that if a problem arises, you do not have to as much damage control to do. Only carry the credit cards that you absolutely need and keep your other credit cards locked up in a personal safe. Having more than one credit card is good for credit purposes and gives you a larger credit limit in case of emergencies, but you probably don't need more than three different credit cards. You may additionally have some specialty credit cards (gas, department store, etc.), but keep track of them all.
Pay off the full credit card amount every month. If you are unable to do so, you are spending beyond your means. It makes little sense to accrue interest fees and late fees, when you are already unable to pay your bills.

Other common sense advice:

1) Never give out credit card info (or Social Security number) over the phone unless you initiated the call, and never over a cordless phone. One common scam is when someone calls you "back" right after you place an order, claims to be from the merchant and tells you that there was a problem with your card number -- would you mind giving it to them again? The best thing to do is ask for a contact name and call the merchant back at the number you used originally.

2) Look for secure checkout when using your credit card to make purchases online. The URL address should include "https:" and often there is a lock icon on your browser. Try to use only well-known retailers. Do not respond to any e-mail asking for credit card information; immediately delete it.

3) Make certain you get your card (and photo ID) back after you make a purchase! Have the clerk give you the sales slips of any cancelled or voided transactions, so that you can personally destroy them.

4) Check your monthly statement to make certain all charges are your own, and immediately notify the card issuer of any errors or unauthorized charges. Which means: Save receipts, all of them! Don't leave them with the retailer. (You can shred receipts after you have balanced your monthly statement.)

5) Never lend your card to anyone, and don’t leave cards or receipts lying around your room, no matter where you live.

6) Oh, my gosh! But I'll say it anyway - don't write down your PIN (credit card PIN for cash advance) anywhere near your credit card, and try to cover the keypad when you punch in the PIN.

7) Shred all those pre-approved credit card offers, and unsolicited credit card applications. Shred old credit card statements. Shred old credit card receipts.

Good luck! As hard as you try, you may not be able to avoid "identity theft", but let's hope for the best!